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Santa Clara-headquartered Oklo Inc (NYSE: OKLO) surged another 20% this morning – extending a blistering rally that now has the nuclear-tech firm trading at 4.5x its price at the start of 2025.

The latest catalyst? A landmark nuclear energy agreement between the White House and Downing Street aimed at accelerating deployment of advanced reactors.

The firm’s explosive rally this year has captivated investors betting on the future of small modular reactors (SMRs), but beneath the surface, serious questions linger about the valuation and overall sustainability of OKLO stock.  

The latest catalyst? A landmark nuclear energy agreement between the United States and the United Kingdom aimed at accelerating deployment of advanced reactors.

What the US-UK nuclear energy deal means for OKLO stock

The aforementioned “Atlantic Partnership for Advanced Nuclear Energy” is a multi-billion-dollar initiative designed to fast-track next-gen reactor development across the US and the UK.

OKLO shares soared on this deal primarily because it opens doors for the NYSE-listed company to UK deployments and reinforces its positioning as a key player in the clean energy transition.

The firm’s existing ties to the US Department of Energy and its conditional agreement with the US Air Force already brought it credibility – and now, with the UK market potentially in play, investors are pricing in a future where OKLO becomes a transatlantic energy powerhouse.

However, despite the added strategic weight, the agreement doesn’t really erase the fact that OKLO remains a pre-revenue company with no operational reactors in 2025.

Why OKLO shares remain super unattractive to own in 2025

While OKLO stock has been nothing short of a millionaire-maker this year, its fundamentals paint continue to paint a picture that isn’t nearly as rosy.

The nuclear technology company posted a wider-than-expected Q2 loss of 18 cents per share, and burned through $28 million in operating expenses, largely due to R&D and acquisition costs.

And while it holds a healthy $683 million in cash – its projected burn rate of up to $80 million for the year means that runway could shrink fast.  

What’s even more troubling is the valuation: OKLO shares are currently trading at more than 20x its book value per share, which means its priced for flawless execution on projects that won’t even generate any revenue until at least 2028.

Plus, regulatory delays, especially with the Nuclear Regulatory Commission, remain a significant overhang.

In short, OKLO is a startup that’s currently priced like a mature utility. Therefore, a single setback – be it in terms of licensing, funding, or technical – could push it into a freefall.  

How Wall Street recommends playing OKLO shares

While the consensus rating on OKLO stock remains an “overweight”, investors should note that it’s already trading well above the Street-high price target of $92 only at the time of writing.

Even if OKLO shares returned to that price level only, it would mean a 25% decline from here.

Meanwhile, the nuclear energy stock doesn’t pay a dividend to incentivise ownership, despite overvaluation, either.

So, it’s really just a high-risk bet masquerading as a clean energy darling in 2025.

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